Treasury Suggested States to Expand Fiscal Stimulus to Contain Gasoline Prices

To counter the rise in the price of gasoline caused by the Russian army's invasion of Ukraine, the Undersecretary of Finance and Public Credit (SHCP), Gabriel Yorio, suggested that state governments expand the fiscal stimulus, as the economy would appreciate it.

This was mentioned by the official this Wednesday prior to the 85th Banking Convention, which is held in the Port of Acapulco, in the state of Guerrero. He explained that the measure would help to contain inflation, since, for example, 60% of the goods that are traded in the country are made by land.

It is worth mentioning that SHCP currently applies a fiscal and complementary stimulus to gasoline in the face of increases that have occurred in the international price of oil, which in turn affect gasoline prices; however, the fiscal stimulus is only for the federal Excise Tax on Production and Services (IEPS), and not the state, whose quota varies depending on the state.

In this regard, Yorio said that each entity would have to decide whether to stop charging it.

Regarding whether this will cause negative collection, he assured that this measure is working well and that Mexico is not the only country that is doing so, since nations such as Canada, the United Kingdom or the United States activated similar subsidies.

According to the Petrointelligence portal, the national average price of fuel this March 23 is 21.32 pesos for the regular one, 23.29 for the premium one and 22.79 for the diesel.